A transportation management system (TMS) is part of supply chain management that has to do with transportation operations. A TMS helps manufacturers, distribution companies and anyone who ships freight move freight from origin to destination efficiently, effectively and reliably. There are many benefits to companies using TMS. Using TMS allows you to:
Increase Customer Service
When you use TMS you are able to understand customer service better. As you choose who to use as a carrier, you can see who gives the best customer service. This allows you to increase your overall customer service because you use outside companies that have better track records with customer service than others because of the information that TMS gives you. You get the information in a timelier manner, and it allows you to make better choices more quickly.
Have Warehouse Efficiency
TMS gives you more time to spend on managerial duties. Once you had to spend a lot of time worrying about managing your freight, now you do not have to because of the TMS. Now you can use more time to manage your warehouse, which will make your warehouse more efficient.
When you use your TMS effectively you are able to optimize how you deliver. You will be able to have a single master bill of lading. With TMS you can log in to the master document from multiple locations. This means that you’ll be able to make sure that everything is delivered when it is supposed to be and that it is all done in the most effective way.
Since you know more information and have a more secure idea of the deliveries, warehouse and customer service, you are able to reduce your inventory. You know what your customers want, so you can plan your inventory better. TMS gives you an accurately predict the inventory that you need.
Improve Cash Flow
Finally, TMS gives you the opportunity to pay less per freight invoice because it gives you the opportunity to properly understand freight payment, auditing and consolidation services
Working in the supply world, TMS gives you the opportunity to better your customer service and your overall business.
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